Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Help Required information [The following information applies to the questions displayed below.) Karane Enterprises, a calendar year manufacturer based in College Station, Texas, began business

image text in transcribed
image text in transcribed
Help Required information [The following information applies to the questions displayed below.) Karane Enterprises, a calendar year manufacturer based in College Station, Texas, began business in 2019. In the process of setting up the business, Karane has acquired various types of assets. Below is a list of assets acquired during 2019: Date Placed in Asset Cont Service office furniture $ 150,000 02/03/2019 Machinery 1,560,000 07/22/2019 Used delivery truck 40,000 08/17/2019 "Not considered a luxury automobile. During 2019, Karane was very successful (and had no 6179 limitations) and decided to acquire more assets in 2020 to Increase its production capacity. These are the assets acquired during 2020: Date Placed in Asset Cost Service Computers & Info. system $ 400,000 03/31/2020 Luxury autot 80,000 05/26/2020 Assembly equipment 1,200,000 08/15/2020 Storage building 700,000 11/13/2020 Used 100% for business purposes. Karane generated taxable income in 2020 of $1,732,500 for purposes of computing the 5179 expense limitation (Use MACRS Table 1. Table 2. Table 3. Table 4. Table 5, and Exhibit 10-10.) (Leave no answer blank. Enter zero if applicable. Input all the values as positive numbers.) c. Compute the maximum 2020 depreciation deductions, including 5179 expense, but now assume that Karane would like to take c. Compute the maximum 2020 depreciation deductions, including 6179 expense, but now assume that Karane would like to take bonus depreciation as well. Description Cost Sec. 179 Expenso Bonus MACRS Basis Current MACRS Depreciation Total Cost Recovery Deduction $ 2019 Assets Office Furniture Machinery Used Delivery Truck 0 0 0 2020 Assets Computers & Info System Luxury Auto Assembly Equipment Storage Building O 0 0 $ Total 2020 Cost Recovery 0 $ 0 $ 0$ 01$ 0 0 $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Handbook Of Mergers And Acquisitions

Authors: David Faulkner, Satu Teerikangas, Richard J. Joseph

1st Edition

0199601461, 978-0199601462

More Books

Students also viewed these Finance questions